The owner of flooring brand Polyflor says the reaction to its new Palettone sheet vinyl collection, introduced in May, has been "exceptional."

In a pre-close trading update, James Halstead, the commercial floorcoverings manufacturer and distributor, said it has invested £2 million on the high-end 50-colour Polyflor product line.

The Manchester based business described it as "the largest new product development by any manufacturer in this core product area in many years," adding that it was delighted with the launch and customer reaction.

It said it would expense the Palettone costs — which related to development trials, sampling and marketing material — rather than amortise or construct an adjustment to "underlying" earnings.

That meant year-to-end June 2018 profits would be in line with last year's levels despite it saying it would again post record sales.

UK turnover was 3 percent ahead of the prior year "in a market that seems to be quite robust despite the well reported spending cuts and high street retailer issues," the North West company said.

James Halstead last year reported profits of £36.5 million on sales of £240.8 million.